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Industrial and Commercial Strategies in the Cold War for Cutting-edge Tech

Author Kim, Dongsoo;Kim, Kyehwan;Cho,Eunkyo Date 2020.09.18 Issue No
File

The previous Cold War was a competition between political systems, but the new Cold War is for hegemony over state-of-the-art technologies.

● Competition in digital technology is the most important factor in determining future hegemony. 

 

The US has waging a strategic war on China in industry and commerce.

● Washington seeks to isolate Beijing globally and assume an insurmountable advantage in industrial competitiveness in state-of-the-art industries. What is happening at the moment is just the beginning.

● Some say additional tariffs and sanctions on Chinese businesses are of no real benefit to the US over the short term, but such moves are expected to be further reinforced for long-term gain.

● Actions to isolate China including the Clean Network Program and sanctions on Chinese companies through executive orders and export regulations to drive them out of global supply networks will grow even more powerful. 

 

China is countering the US technology blockade and sanctions by improving its technological independence, stimulating growth of the domestic market, and expanding ties with friendly countries.

● China is developing original technologies, accelerating its digital transition, localizing supply networks, and expanding its domestic market through its New Infrastructure and Dual Circulation strategies.

● In response to external uncertainties, including the escalation of the Sino-US trade dispute, Beijing is expected to focus on stimulating domestic consumption and localizing supply networks. 

 

Amid a protracted industrial and trade war between the US and China, Korea needs a sustainable and stable strategy for industry and trade.

● The US-China trade dispute over the short term could benefit Korea and help it maintain a comparative advantage over China. Over the long-term, however, the inevitable Cold War in state-of-the-art technology will raise uncertainty.

● The world order is quickly transitioning from military alliances to those of trade and eventually to those of cutting-edge technology. Korea needs to reinforce its ties and cooperation with the likes of Europe, Canada, and Japan.   ?